BMI Research says greater oil production in Angola will increase fiscal revenue, reduce the budget deficit and allow the government to spend more, Lusa reports.

The Portuguese news agency quotes a report by the consulting firm as saying:

“An increase in oil production will ensure government revenues in the coming quarters, fuelling a reduction of the budget deficit by 2019, but consolidation will be gradual because of an increase in capital and recurrent costs.”

The report says the government’s finances will show a “marked improvement over the coming years due to rising oil prices and increased production”.

BMI Research forecasts that the international price of a barrel of oil will rise to US$54 this year and US$55 next year, Lusa says.